Hedge fund guru David Einhorn says he increased his bullish bets last month, but remains concerned about several issues, including the Federal Reserve’s low-interest rate policy. In a conference call with Greenlight Capital Re investors, Einhorn said that he increased his bullish positions thanks to better-than-expected corporate earnings results, Bloomberg reports. But, he added, “This [...]
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Tag Archives: inflation
More On Inflation And Asset Allocation
March 16, 2012
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Last week, we highlighted a MarketWatch column that referenced a new study showing that stocks, against conventional wisdom, have actually served as poor hedges during periods of marked inflation. But a closer look at the study shows that that is far from the whole story. The study was performed by Elroy Dimson, Paul Marsh, and Mike [...]
Read moreAn Industry That Can Beat Back Inflation
March 16, 2012
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In his latest column for RealMoney.com, Validea CEO John Reese says inflation can be a big hindrance to good investing returns, and highlights one industry — pharmaceuticals — that has the power to beat back inflation. “If inflation were Wile E. Coyote then its Road Runner might well be the pharmaceutical industry,” Reese writes. “An [...]
Read moreAre Stocks Really A Good Inflation Hedge?
March 9, 2012
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Conventional wisdom is that stocks are a good hedge during inflationary periods. But some prominent financial researchers say the belief is off the mark. “When inflation has been moderate and stable…equities have performed relatively well,” Elroy Dimson, Paul Marsh, and Mike Staunton of the London Business School write in the 2012 Credit Suisse Global Investment [...]
Read moreBuffett: Productive Assets Like Stocks Offer Most Safety — Not Bonds
February 9, 2012
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Over the past few years, investors have poured into low-yielding Treasury bonds, perceiving them as the safest place to be during the global economic tumult. But, according to Warren Buffett, bonds are one of the most dangerous places for investors to put their money over the long term — and that’s not going to change. [...]
Read moreDeflation Could Help Us, Trahan Says
September 27, 2011
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Highly-rated strategist Francois Trahan says that “deflation” is not a dirty word, and that the Federal Reserve could help the economy by allowing deflation to stem commodity price inflation that is “eroding people’s pockets”. Trahan says Fed members and other policymakers and economists are relying on economic principles that aren’t relevant right now. Three main [...]
Read moreArnott on Why the Valuation Picture Is Troubling
September 16, 2011
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Interest rates and inflation have a much greater role in stock market valuations than you might think, and that means the stock market is on a “very dangerous” path, according to Rob Arnott. In an article for Morningstar, Arnott, of Research Affiliates and PIMCO, looks at the relationship between stock market valuation levels, interest rates, [...]
Read moreDreman: Look Past the Fear — Now’s the Time to Buy
September 8, 2011
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While many investors have been fleeing stocks this summer, David Dreman says it’s a good time to be buying. “No, the market volatility and the seemingly never-ending Fed follies are certainly not what makes me positive on stocks today, but there are some good reasons to be bullish right now,” Dreman writes in his latest [...]
Read moreDon’t Forget The Dividends — And Inflation
July 11, 2011
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Investors may spend a lot of time fretting over whether their portfolios are going up or down. But, despite all of the advances in stock market data availability, many may not be getting an accurate picture of what their portfolios are really doing, says The Wall Street Journal’s Jason Zweig. According to Zweig, after last [...]
Read moreArnott: Look to Alternative Investments to Battle Inflation
June 29, 2011
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Saying that a “3-D Hurricane” — debt, deficits, and demographics — is lingering on the horizon for the U.S., Rob Arnott is taking several steps to prepare his portfolio for an inflationary climate. Arnott tells MarketWatch.com that the U.S. budget deficit is worse than many think, if you include entitlement program costs like Medicare, Medicaid, [...]
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